Low Cost Carriers Archives

Carrier Consolidation

By Econ70 | 10/04/2012

Unlike the AT&T/T-Mobile merger which regulators rejected, the proposed T-Mobile/Metro PCS merger will get quick DOJ and FTC approval. Why? While the AT&T merger would have eliminated the largest low-priced competitor from the marketplace and increased industry concentration at the top, the Metro PCS merger enhances competition by merging two weak carriers to hopefully create…

Airline Deregulation Hits Airlines

By Econ70 | 07/20/2011

30 years after deregulation most airlines lose money. While high fuel prices don’t help they have only played a role recently. The key factors are plummeting demand following 9/11 that left demand weaker in ’09 than it was in ’00 and large cost difference between legacy carriers (LC) and low-cost carriers (LCC). LC costs have…